Get Entrepreneur Now

Cashing in: Sen.
Christopher Bond (R-MO) has a new bill (S.2246) that would permit
business-owning taxpayers with average annual gross receipts of $5
million or less to use cash-method rules of accounting, instead of
costly accrual accounting rules. "If we allow small companies
to use cash accounting, we can substantially reduce the cost of
hiring bookkeepers, accountants and lawyers for thousands of small
businesses," says Bond, chairperson of the Senate Committee on
Small Business.

Talking tech: A group of
Republican House members has introduced a bill (H.R. 4184) that
would allow small businesses to deduct the cost of noncustomized
software in the year in which it is purchased. Currently, software
costs have to be amortized over three years. The Fairness in
Amortization of Software Tax (FAST) Act would put software and
hardware expensing on the same level: Section 179 of the Code
allows small businesses to expense hardware and other office
equipment up to $20,000 in tax year 2000, $24,000 in 2001 and 2002,
and $25,000 in 2003.

Stephen Barlas is a freelance business reporter who covers
the Washington beat for 15 magazines.